CARES Act Favorable Tax Treatment for Retirement Plan Distributions
So I'm working through our taxes and came across the section where by filing Form 8915-E, a "qualified individual" who has been adversely affected by the COVID-19 pandemic can get more favorable tax treatment for retirement plan distributions during 2020. My husband was furloughed and ultimately terminated due to the pandemic. I have taken tIRA distributions throughout the year and have paid taxes via withholding on them. (They are not RMDs.) As far as I can tell, the benefit of characterizing these distributions as due to the pandemic are for me twofold: first, I can spread out the taxes over up to a three year period or second, I can redeposit the distributions over the same period and get the taxes paid back.
I don't expect to want to redeposit the distributions and I'm not sure the extra paperwork is worth the savings on delaying the taxes. Has anyone here who is eligible for this considered all the pros and cons? Have I missed anything?